American Financial Group, Inc. (AFG) vs Mercury General Corporation (MCY)

American Financial Group, Inc. and Mercury General Corporation are both Insurance Property & Casualty companies. American Financial Group, Inc. is the larger, with a market value of $11.5B against $5.4B — 2.1× the size. Mercury General Corporation trades at the lower P/E: 5.9× against 12.1×. Mercury General Corporation grew revenue faster over the last twelve months: 9.95% against −0.24%. Mercury General Corporation has the higher net margin (14.8% vs 11.5%) and the higher return on invested capital (35.8% vs 14.4%). Both pay a dividend; American Financial Group, Inc. yields more (4.48% vs 3.17%). Across the 23 metrics below, Mercury General Corporation leads on 21 and American Financial Group, Inc. on 2.

Valuation

Metric AFG MCY Insurance Property & Casualty median
P/E 12.08 5.88 10.29
P/S 1.39 0.87 1.17
P/B 2.38 1.94 1.83
Price to free cash flow 7.98 4.28 7.48
EV/EBITDA 8.58 3.73 7.49
EV/Sales 1.43 0.75 1.13
Earnings yield 8.28% 17.02% 9.50%
Free cash flow yield 12.53% 23.34% 13.29%

Profitability

Metric AFG MCY Insurance Property & Casualty median
Gross margin 22.29% 26.12% 41.16%
Operating margin 15.60% 18.78% 15.09%
Net margin 11.51% 14.77% 11.51%
Free cash flow margin 17.37% 20.26% 17.59%
Return on equity 20.41% 38.99% 18.19%
Return on assets 2.99% 9.55% 3.74%
Return on invested capital 14.44% 35.81% 12.06%

Growth

Metric AFG MCY Insurance Property & Casualty median
Revenue growth (TTM) (0.24%) 9.95% 8.69%
EPS growth (last fiscal year) (4.64%) 15.62% —
Revenue growth, 5-year CAGR 7.22% 9.63% 9.23%
Net income growth, 5-year CAGR 2.84% 7.63% 10.09%

Health

Metric AFG MCY Insurance Property & Casualty median
Debt to equity 0.38 0.33 0.25
Current ratio 0.49 0.42 0.42
Net debt to EBITDA 0.08 (0.97) 0.08

Dividend

Metric AFG MCY Insurance Property & Casualty median
Dividend yield 4.48% 3.17% 2.79%
Payout ratio 0.25 0.57 0.27

Size

Metric AFG MCY Insurance Property & Casualty median
Market cap 11.48b 5.44b 2.44b

Compare with another peer

Any metric, up to five companies and an Excel export Powerpack